Hensoldt AG · XETR:HAG
Hensoldt — FY2022 Earnings Presentation
39 slides from Hensoldt's earnings presentation, Feb 23, 2023
Slide 1: FY 2022 Preliminary Results – Analyst & Investor Presentation
HENSOLDT FY 2022 Preliminary Results – Analyst & Investor Presentation Taufkirchen, 23rd of February 2023 Thomas Müller, CEO Christian Ladurner, CFO This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Co
Slide 2: Disclaimer Forward Looking Statement
HENSOLDT – FY 2022 preliminary results Disclaimer Forward Looking Statement This presentation and the information contained herein are for information purposes only and should not be treated as This presentation may contain forward-looking statements about HENSOLDT and its businesses, including stat
Slide 3: We have fully delivered on our FY2022 guidance
HENSOLDT – FY 2022 preliminary results We have fully delivered on our FY2022 guidance 2022 preliminary Change vs 2021 vs guidance Book-to-bill ratio(1) 1.2x -1.0x Revenue €1,707m +16% Adjusted EBITDA(2) €292m +€31m Adjusted EBITDA margin(3) 20.4% +1%-point Adjusted pre-tax unlevered FCF(4) €219m -€3
Slide 4: Key Strategic Achievements 2022
HENSOLDT – FY 2022 preliminary results Key Strategic Achievements 2022 Updated guidance for 2023 Strategic cooperation with Successful transition of Sustainalytics ranks and mid-term released 21strategies Management Board with HENSOLDT AG again #1 in at CMD in December 2022 on development of AI Chri
Slide 5: Strategic orders received in 2022
HENSOLDT – FY 2022 preliminary results Strategic orders received in 2022 FCAS Halcon EF C3 Phase 2 F126 M1 Abrams ELRF Contract for Demonstrator Radar and self-protection Long-term service contract Order for 4 TRS-4D radars Additional batches of the Phase 1B system for Spanish EF for Eurofighter boo
Slide 6: HENSOLDT supports German Government with deliveries for Ukraine
HENSOLDT – FY 2022 preliminary results HENSOLDT supports German Government with deliveries for Ukraine COBRA TRML 4D Leopard 2 Artillery Detection Radar Air Defence Radar Main Battle Tank One unit delivered to Ukraine in Q3 4 units for IRIS-T SLM air defence system in HENSOLDT equips the Leopard 2 w
Slide 7: We consistently implement our strategy
HENSOLDT – FY 2022 preliminary results We consistently implement our strategy Drive digital and Convince customers Become ESG sector Live strong Improve innovative portfolio with our capabilities benchmark company culture operational efficiency 05/22: successful Kalaetron 10/22: Teaming agreement wi
Slide 8: HENSOLDT GO! Wave 3 to be rolled out between 2023 and 2025
HENSOLDT – FY 2022 preliminary results HENSOLDT GO! Wave 3 to be rolled out between 2023 and 2025 HENSOLDT GO! Wave 1 HENSOLDT GO! Wave 2 HENSOLDT GO! Wave 3 • Drive internationalization • Finalize carve-out from Airbus • Keep momentum to transform • Improve supply chain robustness HENSOLDT and incr
Slide 9: OneERPnow – the efficient way to handle growth
HENSOLDT – FY 2022 preliminary results OneERPnow – the efficient way to handle growth Digital products & services Digital enterprise Digital work and culture Digital foundation Better data at the right time Increased efficiency Managing upcoming growth Enhanced business insights to best serv
Slide 10: We find ourselves in a new defence environment
HENSOLDT – FY 2022 preliminary results We find ourselves in a new defence environment Threat Environment Implications • Significant uptick of threat • Clear shift in global security environment in Europe perception through Russia’s war War In Ukraine against Ukraine • Higher commitment to defence bu
Slide 11: Top 5 orders expected in 2023
HENSOLDT – FY 2022 preliminary results Top 5 orders expected in 2023 PUMA Eurofighter TRML-4D NNbS U212 CD Sensors for commander Radars and For Ukraine, domestic and Radars for future German short Twin Optronic Mast systems and gunner sights and self-protection systems export customers range and ver
Slide 12: Financials
HENSOLDT Financials This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2022. All rights reserved.
Slide 13: FY 2022 – strong performance in top line
HENSOLDT – FY 2022 preliminary results FY 2022 – strong performance in top line in €m Order intake in line with guidance Excellent conversion into revenue Order backlog further increased +5% Baseline Pegasus +16% 1,250 5,366 1,707 5,092 1,921 1,993 1,474 FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim
Slide 14: FY 2022 – strong growth in bottom line
HENSOLDT – FY 2022 preliminary results FY 2022 – strong growth in bottom line in €m Further increase of profitability Cash conversion exceeds guidance +12% +13% 292 252 20.4%(2) 219 224 261 15.7%(2) 19.4%(2) 199 14.8%(2) FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim Adj. EBITD
Slide 15: FY 2022 – Sensors segment
HENSOLDT – FY 2022 preliminary results FY 2022 – Sensors segment in €m Strong order intake Sustainable growth Increase of absolute margin Baseline Pegasus +22% +20% 1,250 1,404 1,675 233 1,524 1,148 194 FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim Order intake(1) Revenue Adj.
Slide 16: FY 2022 – Optronics segment
HENSOLDT – FY 2022 preliminary results FY 2022 – Optronics segment in €m Further order intake secured Temporary shortage of supply chain Investments in new programs 405 333 332 310 68 59 FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim FY 2021 FY 2022 prelim Order intake(1) Revenue Adj. EBITDA(2) Main
Slide 17: Deleveraging from FY 2020 to FY 2022
HENSOLDT – FY 2022 preliminary results Deleveraging from FY 2020 to FY 2022 in €m Net debt development YoY Net leverage(1) 2.6x 1.6x 1.2x Deleveraging on track Continuous improvement of net leverage Strong cash flow generation 571 in Q4/2022 425 336 RCF fully repaid in 2022 High visibility of financ
Slide 18: Dividend proposal 2022
HENSOLDT – FY 2022 preliminary results Dividend proposal 2022 Guidance outlined Increased profitability Due to the excellent business a dividend reflected in development, the management board of up to 20% adjusted net income of intends to propose to the supervisory of adjusted net income 2022 €124m
Slide 19: Updated guidance 2023
HENSOLDT – FY 2022 preliminary results Updated guidance 2023 Old 2023 target(5) New 2023 target Book-to-bill ratio >1x 1.1 - 1.2x Revenue growth(1) Mid to high single digit 7 - 10%(6) with stronger growth in core revenue excl. pass-through Adjusted EBITDA margin(2) ~19% ~19% before pass-through reve
Slide 20: Updated increased medium term guidance
HENSOLDT – FY 2022 preliminary results Updated increased medium term guidance Old medium term target(4) New medium term target Orders to grow faster than revenue Orders to grow significantly faster than Order intake Book-to-bill ratio >1x revenue Revenue growth(1) Mid single digit 10%(5) average ann
Slide 21: Capital allocation
HENSOLDT – FY 2022 preliminary results Capital allocation Fund our growth Dividends M&A While preserving a conservative financial debt profile 21 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyr
Slide 22: Key financial takeaways
HENSOLDT – FY 2022 preliminary results Key financial takeaways • Strong order intake in all divisions Order backlog(1) / LTM revenue Visibility • High revenue coverage from firm order backlog FY2022(2) 3.1x Revenue growth Top-line growth • Again excellent conversion into revenue 2021 – 2022 prelimin
Slide 23: Q&A session
HENSOLDT Q&A session This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2022. All rights reserved.
Slide 24: Financial Section
HENSOLDT Financial Section This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2022. All rights reserved.
Slide 25: Consolidated Income Statement
HENSOLDT – FY 2022 preliminary results Consolidated Income Statement Fiscal year in € million 2022 (preliminary) 2021 Revenue 1,707 1,474 Cost of sales -1,314 -1,144 Gross profit 393 330 Selling and distribution expenses -107 -99 General administrative expenses -92 -83 Research and development costs
Slide 26: Consolidated Statement of Financial Position – Assets
HENSOLDT – FY 2022 preliminary results Consolidated Statement of Financial Position – Assets 31 Dec. in € million 2022 (preliminary) 2021 Non-current assets 1,335 1,326 Goodwill (1) 658 658 Intangible assets 384 385 Property, plant and equipment 121 108 Right-of-use assets 140 141 Investments and ot
Slide 27: Consolidated Statement of Financial Position – Equity & Liabilities
HENSOLDT – FY 2022 preliminary results Consolidated Statement of Financial Position – Equity & Liabilities 31 Dec. in € million 2022 (preliminary) 2021 Share capital 105 105 Capital reserve and other reserves(1) 554 471 Retained earnings (1) (2) -55 -171 Equity held by shareholders of HENSOLDT AG 60
Slide 28: Consolidated Statement of Cash Flows (1/2)
HENSOLDT – FY 2022 preliminary results Consolidated Statement of Cash Flows (1/2) Fiscal year in € million 2022 (preliminary) 2021 Group result 80 63 Depreciation and amortisation 103 126 Financial expenses (net) 27 33 Change in Provisions -22 31 Inventories -75 -44 Contract balances -25 111 Trade r
Slide 29: Consolidated Statement of Cash Flows (2/2)
HENSOLDT – FY 2022 preliminary results Consolidated Statement of Cash Flows (2/2) Fiscal year in € million 2022 (preliminary) 2021 Cash flow from operating activities 244 299 Cash flow from investing activities -101 -117 Proceeds/repayment of financing liabilities(1) -169 -263 Payment of lease liabi
Slide 30: Reconciliation to group figures
HENSOLDT – FY 2022 preliminary results Reconciliation to group figures Fiscal year in € million 2022 (preliminary) 2021 Order intake 1,993 3,171 Sensors 1,675 2,774 Optronics 333 405 Elimination/Transversal/Others -15 -8 in € million Revenue 1,707 1,474 Sensors 1,404 1,148 Optronics 310 332 Eliminat
Slide 31: Overview of EBITDA and EBIT adjustments
HENSOLDT – FY 2022 preliminary results Overview of EBITDA and EBIT adjustments EBITDA adjustments Fiscal year EBIT adjustments Fiscal year in € million 2022 2021 in € million 2022 2021 (prelim.) (prelim.) EBIT 166 126 EBIT 166 126 (+) Effect on earnings from purchase price allocations 36 64 (+) Depr
Slide 32: Reconciliation of reported to adjusted pre-tax unlevered FCF
HENSOLDT – FY 2022 preliminary results Reconciliation of reported to adjusted pre-tax unlevered FCF Fiscal year in € million 2022 (preliminary) 2021 Cash flow from operating activities 244 299 Cash flow from investing activities -101 -117 Free cash flow 143 182 (+) Transaction costs 19 0 (+) IPO rel
Slide 33: Reconciliation of reported to adjusted net income
HENSOLDT – FY 2022 preliminary results Reconciliation of reported to adjusted net income Fiscal year in € million 2022 (preliminary) 2021 Group result 80 63 (+) Effect on earnings from purchase price allocations 36 64 (+) Transaction costs 0 0 (+) IPO related costs – 1 (+) OneSAPnow related non-recu
Slide 34: Q4 Financial Overview HENSOLDT Group
HENSOLDT – FY 2022 preliminary results Q4 Financial Overview HENSOLDT Group Fourth quarter in € million 2022 (preliminary) 2021 Order intake 616 351 Book-to-bill ratio(1) 1.0x 0.6x Revenue 607 625 Adjusted EBIT(2) 149 132 Adjusted EBITDA(3) 166 150 Adjusted EBITDA margin 27.3 % 24.0 % Adjusted pre-t
Slide 35: Back-up
HENSOLDT Back-up This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2022. All rights reserved.
Slide 36: OneERPnow rollout in waves to de-risk process
HENSOLDT – FY 2022 preliminary results OneERPnow rollout in waves to de-risk process 2022 2023 2024 2025 2026 2027 Project Post go- Partner and software Global process Pilot Rollout Rollout and team live selection template design Rollout Wave 1 Wave 2 ramp-up support Mid of 2023 Mid of 2024 End of 2
Slide 37: Upcoming IR events
HENSOLDT – FY 2022 preliminary results Upcoming IR events* FY 2022 FY 2022 Q1 2023 AGM H1 2023 9M 2023 preliminary audited Feb 23rd Mar 22nd May 9th May 12th Jul 28th Nov 9th 2023 2023 2023 2023 2023 2023 37 This document and its content is the property of HENSOLDT AG. It shall not be communicated t
Slide 38: IR Contacts
HENSOLDT – FY 2022 preliminary results IR Contacts Contact HENSOLDT share Reports Contact: Type of share: Financial Reports: Veronika Endres Bearer shares https://investors.hensoldt.net Tim Schmid Stock Exchange: Annual Report: Phone: Frankfurt Stock Exchange https://annualreport.hensold
Slide 39: This document and its content is the property of HENSOLDT AG. It shall not
This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2022. All rights reserved.